12 Frugal Apps that Make It Hip to Be Square

A host of new apps for Droid and iPhone have finally done the impossible: they have made it cool to be frugal.

iPhone 4's Retina Display v.s. iPhone 3G by Yutaka Tsutano on Flickr

The app market has exploded in recent months—there are currently over 350,000 apps available on the apple.com website alone—and more are being added constantly. Many of these apps are designed to help thrifty consumers save money. There are apps to help you cut costs, track spending, maximize efficiency, and even avoid budget-busting pitfalls.

It’s now positively cool to pinch pennies using a slew of apps that can help you throughout the day: on your commute, while preparing meals, at the grocery store, even during happy hour. Here are a few money-saving apps to help you squeeze the most out of your monthly budget and look cool doing it:

1. Dinner Spinner – This iPhone app from the popular cooking site allrecipes.com allows you to enter an ingredient and see a list of recipes using that item. It can be a great source of inspiration when you are trying to whittle down the pantry supplies, or are stumped for what to do with an eggplant. Price: Free. (A pro version with enhanced features is available for $2.99.)

2. BigOven – Similar to Dinner Spinner, this cooking app has a deep recipe database and a special function to help you use up leftovers creatively. Available on iPhone and Android. Price: Free.

3. Groupon – Groupon’s subscribers leverage the power of collective purchasing by signing up for daily deals in select cities. If the minimum number of purchasers signs up, then the coupon is activated and users receive a deep discount on a product, event or service. Available on iPhone and Android. Price: Free.

4. Carticipate – This carpooling app puts riders and drivers together to unclog the roads, take advantage of rideshare lanes, and reduce pollution. Go green and meet like-minded people in your area, all while lowering your monthly gas bill. For iPhone. Price: Free.

5. CheckPlease – Much more than a tip calculator, this app also helps you divide up restaurant bills among multiple diners, switch to different currencies, and even skip tipping on sales tax. Helpful if you have friends whose math-impairment leaves you with an unfair share of the bill at times. Available for iPhone and Android. Price $0.99.

6. Cobra iRadar– All of your scrimping and budgeting for the month can be blown away by one hefty traffic fine. The award-winning Cobra iRadar app for iPhone alerts drivers to red-light cameras and speed traps, as well as dangerous intersections. Bugs in earlier versions have been largely resolved. An Android version will be available in early 2011. Price: Free.

7. Skype — Skype is a great resource for making free calls either computer to computer or device to device over WiFi or 3G. Skype is especially useful for avoiding steep international phone charges. Calls and text messaging to land lines are charged at reasonable prices. Available on Android and iPhone. Price: Free.

8. Mixology – The free app Mixology Drink Recipes lets you be your own bartender. Look up a few cool recipes (the “Guilty OJ” sounds pretty interesting), invite some friends over, and have happy hour at home instead of going out and paying for overpriced cocktails after work. With nearly 8,000 drink recipes, this little app should keep you entertained for quite a while. Available on Android and iPhone. Price: Free.

9. Coupon Sherpa – This coupon app allows you to take advantage of in-store merchant discounts without the hassle of clipping or printing out coupons. The location-based software uses your phone’s GPS to identify coupons for stores in your vicinity. To redeem, the cashier scans a bar code from your device or enters a numeric code. You can also customize the display to highlight your favorite merchants and filter out the duds. Special coupons for app users are available as well. Available on Android and iPhone. Price: Free.

10. GroceryIQ – Shopping from a list helps keep your grocery store bill under control by eliminating impulse purchases. The shopping list app Grocery iQ takes the shopping list to a new level of usefulness. This app helps you get in and out of the store in an efficient manner by organizing your list by aisle, and also lets you scan and record favorite items for future reference. Coupons, sorted by aisle or brand, help you trim costs, and a new feature allows you to synchronize shared lists with multiple users so you and hubby don’t come home with redundant purchases. Available on Android and iPhone. Price: Free.

11. Mint – No money-saving app list would be complete without Mint.com. Mint is an on-the-go personal finance app that gives users a detailed financial picture across multiple accounts. Categorized budgeting info gives you an up-to-the minute spending picture for the month, so it’s easier to keep your finances on track. Available on Android and iPhone. Price: Free.

12. GasBuddy – Another simple, but popular app, GasBuddy, lists fuel prices based on the user’s location. Powered by a community of users who input data on local gas prices, this app will save you money at the pump (as long as you don’t drive across town for a one-penny-per-gallon discount). For iPhone and Android. Price: Free.

Since there are a few hundred thousand apps out there that I didn’t mention, there are probably many more that could be added to this list. If you have any favorite frugal apps, please share them!

This post is contributing author Laurel Gray.

Weekly Roundup – What Big Thing(s) Are You Saving For?

I’d like to find out what kinds of things people are saving for these days – beyond a rainy day. Remember, I advocate saving for sunny days, too!

What’s something you’d like to own, or like to experience, in the next couple years, but aren’t willing to go in debt for it? I’ll go first.

Wolfden at Home by Redwolf Journeys on Flickr

I want to buy an RV. A travel trailer to be more accurate. I did a lot of frugal camping with my grandfather growing up and I want to create some of those same memories with my kids. I also like that a trailer or RV could double as a bug-out vehicle if things really hit the fan. I’ve got a small, dedicated savings account started and I’m watching the prices of late model, used trailers.

Your turn.

The Frugal Roundup

Save Money by Trading Down Your Home. We are quite content in our home now, and instead of trading up, we’ve decided to stay put and downsize when the kids head off to college.

Budget Protests and the Financial Impact on Our Family. A first-person account from a fellow blogger dealing with fallout from the Wisconsin protests (and budget crisis).

Eight Minutes to Financial Success – Minute #4: Minimize Electronic Temptations. This reminds me that Amazon Prime is one of the best things I ever signed up for and the worst thing I ever signed up for.

Ten Economic Charts that Will Blow Your Mind. Numbers don’t lie. Our economic outlook is bleak.

What Frugality REALLY Means: It’s Not About Being Cheap. Amen! So many people assume frugal people are cheap. I’ve found that to be quite the opposite.

Craft the Life You Want: Setting Up Shop or The Importance of Where You Live. My wife and I used to dream of life in the Pacific northwest, with cooler temperatures and proximity to the mountains and the ocean. But for now, we’re quite content to stay put.

The Worthlessness of Net Worth. Net worth is a horrible measuring stick for comparing wealth, because often those with the highest net worth’s are only that way on paper.

Best of the Rest

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Living Abroad, Frugally: An Interview with Mom and Son Team Behind RaisingMiro.com

I recently had the pleasure of crossing virtual paths with Lainie Liberti and her son Miro. They are the team behind RaisingMiro.com, which details the adventures of Lainie and Miro, originally from California, as they live “a nomadic lifestyle and have no destination in mind or an end date to count down to.” That’s right; they basically picked up with the clothes on their backs, and a little savings in the bank, and set out to live in many countries around the world.

Naturally, I had several questions for them, and after trading emails a couple times I realized they were natural frugalists – mostly because they had to be! Lainie and Miro agreed to answer a few questions and share more of their experience here.

Which country have you found to be the cheapest to live, comfortably?

Ah, this is a very interesting question. I think living cheap and comfortable are separate concepts and I will answer them separately here. Living cheaply in another country is different than living frugally in the United States. However, we take a budget of what would equate to living frugally in the States and have the opportunity to live richly by experiencing different cultures.

I am traveling with my son on an eight-year around the world adventure. We live on a small budget and have several strategies to keep our expenses down.

Our combined budget for living and traveling for both of us is around $1000 a month, sometimes less, and in all honestly a few months we have spent more. However, this is a budget not possible in the United States. We do live frugally based on American standards, and have managed to maintain that in every country we have visited, so far.

However the description of living frugally is not really an accurate one because the economic standards are very different compared to the United States, and different in each country we visit. So far, we have been traveling through Latin America – for the first year and a half we were in Central America and now, we find ourselves in South America.

Living comfortably is a different concept altogether, and if we address standards of living (sometimes equating to products and conveniences) to the United States, you will not be able to reasonably compare. Apples to apples, oranges to oranges. So, what we have done, is adapted to travel with a long term plan which allows us to live in a country as close as possible to living as a visiting local.

What we don’t do is visit a country like a typical American tourist. We do not stay in expensive hotels or condos built for foreigners, dine at expensive restaurants, or take the exclusive tourist excursions. Yes, we may be missing some part of the experience, but we are traveling around the world in order to experience the culture, not something you can do if you only opt for the tourist experience.

We found both Nicaragua and Guatemala to be two favorites, so far, both economical. There were differences between both experiences and both places, however we lived in both long(er) term, one for three months and the other for eight months. In both instances we lived in a quaint colonial towns, with lovely pastel buildings and a wealth of history.

In  Nicaragua we lived in Granada, and in Guatemala we lived in Antigua. Both places offered a pretty good infrastructure for us, including internet (for the location-independent worker), modern supermarkets, gyms, and good public transportation. Also, both had a large population of Westerners living both within the city proper and the surrounding areas.

In Nicaragua, my son and I shared a large private bed room with each other with a private bath in a hacienda style house with 8 bedrooms total. The house was a typical Spanish-style house with all the rooms surrounding  an open garden in the center of the house. The home had many shared living areas from a front sitting room, garden area with hammocks, two dining rooms and two kitchens.  Our monthly rent was $200, but did not include internet or laundry.

In Guatemala, we rented a large 3 bedroom house near the city center.

The house shared 3 walls with the neighboring tenants. Our house was two levels, had a small open-air garden, a big beautiful kitchen, a main living room, washer/dryer, and cable and internet for $650 a month.

During the seven months we lived there, we  rented out one the two extra bedrooms on weekly or monthly basis which left our portion of the rent to be on average around $350 – $400 a month.

There are definitely differences though between the countries and our living experience. For one, Nicaragua is much hotter and the quality of life for the general population was tougher due to the heat. There is fruit readily available on trees through the city which many people eat.

There are class divisions for sure in Nicaragua. In the neighboring capital of Managua, you have a few very wealthy, but the majority lives in poverty. We found the food was generally bland, a lot of gallo-pinto which was rice and bean, fried fish, and an abundance of chicken and pork was available. There was a low selection of fruit; we still haven’t taking a liking to things like sour star fruit, jamaica, and granadas, to name a few.

Interestingly though, none of the fruits were very sweet and neither Miro nor myself grew a fondness for them during our stay. Fresh vegetables were not very abundant other than tomatoes and potatoes. Nicaragua did have a rich history and people especially in the city we lived in were highly politicized and passionate about improving their lives. Overall, our stay there was comfortable, economical, the weather was hot and the people were passionate and helpful. We would absolutely spend time there again.

Guatemala has two distinct populations, the indigenous or people of Mayan decent and the people with a majority of lineage of Spanish decent. The indigenous still lived in villages. The women still wore the traditional costumes and the community functioned much the same way it did hundreds of years ago. They did not integrate into modern culture with the exception of mingling for commerce. The Mayans are farmers and from my observation, tend to work well together.

In comparison to Nicaragua, which has no current indigenous culture, the Mayans in Guatemala filled the markets with exotic  fresh fruits, vegetables, beans, rice and spices all for pennies, by American standards.

A trip to the market where I’d purchase produce for the week (we tend to cook vegetarian at home) would cost me about $10 a week. I would buy a large pineapple, and a large papaya to  make juice (liquidados) , strawberries, and black berries. Also included in in $10 a week budget would be tomatoes, spinach lettuce, onions, potatoes, green onions, squash, green beans and black beans and rice. Eating on a budget and healthy in Guatemala was easy to do.

Your son is getting a great education by expanding his world view, but how do you keep up with the formal educational requirements?

We have opted not to follow formal education, thus making the formal educational requirements not a focus. We are “world schooling” or “radically unschooling,” a formal name given to many in this movement.

However, traveling is not a requirement of unschooling, but it  just happens to be how we are experiencing it.

We actually did a podcast episode talking all about unschooling, even spoke with another single mom who’s raising her son the same way. It’s an interesting conversation.

How do you receive (snail) mail?

We don’t. On the rare occasion I need to have something snail mailed to us, I have a family member accept it on my behalf. Part of our goal preparing for our trip was to radically disconnect from all traditional ties. I have no credit cards, therefore I have no credit card statements. I do still have an American bank account, however, my account is set to the ‘paperless’ option. All of my other correspondences are digital, sent to my email account. I do still have a California telephone number through Vonage  and am notified of messages via email.

What’s your favorite cuisine? Your son’s favorite?

We have only traveled so far through Latin American countries so I’ll answer this question based on our travels. I love all the fresh fruits and vegetables available in Guatemala. However, as I write this here from Colombia, I have since discovered many new fruits that are absolutely amazing.

I fell in love with nispero, which kind of looks like a potato, but it tastes like a cross between a pear and a date. I also love uchuvas, which are tiny orange-like grapes which are sweet and sour at the same time. So easy to keep popping then in my mouth. Also love zapote which is related to the nispero, but is orange and fleshy inside. Of course, the papayas always excite me and my son has become a mora (blackberry) addict.

I learned how to make traditional black beans in Guatemala, taught to me by one of our friend’s mom, and I love fresh black beans with rice and chili. Also, I learned how to make arapas in Colombia which are white corn pancakes fried with cheese. Also, in Panama, I love all the fresh ceviche. I have been told to expect amazing ceviche once we get to Peru, so I’ll check back in and report my findings.

Miro’s all time favorite food is an El Salvadorian special called pupusas. Like the arapas, they are a corn pancake, but they are somewhere between a tortilla and a pancake. We would go to a pupusaria in Guatemala, that offered pupusas stuffed with everything from mushrooms, chicken, chorizo, onions, bean and cheese. Wow, just writing this make our mouths water.

Read: Miro’s blog post about his favorite foods

The key to staying on a tight budget is eating local, eating as the locals do and buying local. There are those occasions where we’ll shell out the ridiculously outrageous price to by a jar of imported peanut butter, but that’s the exception rather than the rule. If we wanted all the regular foods from the States we would be better off staying in the States.

Tell us more about couch surfing. Any particular concerns/lessons learned for parents looking to doing this with kids?

We absolutely love the couch surfing project.

Couch Surfing is a community of people, not to be confused with simply a free accommodation. It is true that one of the many benefits of Couch Surfing is that it can make your travels more affordable, however the most meaningful benefit is the connection you make with other Couch Surfers. We have experienced cultural exchanges that help us experience the world as a safe place to live and travel.

In our opinion, The Couch Surfing project helps to raise the collective consciousness, spread tolerance, and facilitate greater cultural understandings. All that, by opening up one’s personal spaces, hosting & being hosted and sharing what it means to be a global citizen.

We have been involved in Couch Surfing since 2007, when we hosted our first guest in our Los Angles loft. We continued to host many people over the year before we left the country, somewhere around 30 guests over that period of time. After that, we Couch Surfed in Mexico, Belize, Costa Rica, Nicaragua, Honduras and Guatemala, until finally settling in Antigua, Guatemala for 7 months where they became one of the only couches available and ended up hosting well over 50 travelers during that period of time.

Lainie and Miro were even featured in an article on CouchSurfing.org.

Without a steady income (or steady expenses), how do you handle budgeting?

When you don’t have a lot of money, it’s easy to be frugal.  We walk a lot, take local buses, eat locally and volunteer.

We live as if it’s a privilege to be in the countries we visit. With that attitude, it’s easy to give back, either by helping out how ever we can, volunteering or being of service some other way. As locals invite us into their homes, we are always in a state of gratitude and the exchange is never about money, it’s about sharing our unique cultures with one another.

I cook a lot for our hosts, play with children and even help out with English lessons. Our attitude is never about what can we get, it’s about what can we give, and since money isn’t an option for us, we’ve become more creative with our giving.

It’s simple to live mindfully, frugally, and in a state of grace with that concept.

The funny thing is, even when our money gets tight, we always seem to have exactly what we need.

I do work freelance design from the road to support us, however my goal is to phase that out entirely. We have started to generate a little ad revenue from our web site and travel podcast at RaisingMiro.com. Also, we receive donations from our listeners, who are inspired by our journey and have become inspired to support us.

How do you move (both locally and country to country) without wiping out savings?

We travel by bus and have actually come to love bus travel. I tend to sleep like a baby on buses and because of my small stature, I don’t usually have problems with cramped seats. Local buses are the cheapest, but there long distance bus companies that offer direct routes. It depends if we’ve decided to travel to our next destination or desire to explore the smaller villages along the way. That will determine how we travel.

There have been a few occasions when we have flown, but only if there is no other option. We never book our flights through American website outlets, as they are always more expensive. If we do fly, we research the countries local airlines, then try to book through their web sites. Sometime that requires asking for help from a native speaker is an English version of the web site is not available. Making mistakes on flights can be an expensive mistake.

Some will argue that a “nomadic lifestyle” does not provide a stable environment for kids. How do you respond to that?

I suppose one could argue living a mainstream lifestyle consisting of waste, mindless consumption  and fear is not a healthy or stable way to raise a child either. Stability is simply a man-made concept and we can perceive our lifestyle as being more stable because of the life preparation my son is receiving.

In my mind, raising my son with the world as his classroom, real-life learning as his teacher and hands on experiences cannot compare with the a traditional life back in the States. We slow travel, therefore we immerse ourselves in the communities we visit.

Will this adventure eventually stop, and if so, are you scouting a place to settle down?

Eventually I suppose it will. Or perhaps it will not. I assume though after my son turns 18 he will no longer desire the company of his mom. He has the best attitude though. He says he wants to experience every country in the world in order to know exactly where he wants to live.

If I had to make a guess now about his life path, (which could change) I would guess he’ll do something like join the peace corps and combine his love for travel and service. Only time will tell. But I am certain of one thing, the  education he is receiving from both a humanitarian perspective and with a true understanding of how local economies work, he will do great things with his life and for the world.

Thanks again to Lainie and Miro for taking time to address these questions. Always enjoy reading new perspectives from others with experiences vastly different than my own. Another personal finance blogger, Baker from ManvsDebt.com, has chosen to take a similar path, and is currently traveling for a year (domestically) by RV with his wife and young daughter.

How to Work Giving into Your Budget

The following post is from contributing author Laurel Gray.

It is a mistake to think that frugality and charity are mutually exclusive. “I was trained from the beginning to work, to save, and to give,” said noted philanthropist John D. Rockefeller, Jr. Even if you are not a Rockefeller, these three rules can be applied to your family’s monthly budget—no matter how tight.

Compassion by Aaron Alexander on Flickr

In tough economic times charitable donations trend downward, but people do continue to give. According to a study by the Center on Philanthropy at Indiana University, 65% of U.S. households gave to charity in 2007. The average annual household contribution was $2,213 and the mean was $870. This works out to around 3% of annual income for most households, according to charitynavigator.org.

If you are clipping coupons and trimming expenses, $2,213 probably sounds like a astronomical sum. But there are many ways to work giving into your budget without torpedoing your ongoing efforts at thrift.

Give Frugally

If you intend to make charitable contributions during the course of the year, plan ahead to make every dollar count. Here are a few hints to help you get the most bang out of your charity buck:

Trust, but Verify—Determine which charity is most in line with your interests and beliefs, then investigate the charity’s financial practices, especially its overhead costs. Make sure the charity meets IRS qualifications so that your donation will be tax deductible.

Double Up—If your workplace offers a matching program, review program rules to determine the level of matching (some programs match dollar for dollar, others are percentage-based). Small donations throughout the year can add up to make a big impact when coupled with your employer’s contribution.

Give as You Go—If a payroll deduction seems too much to bear, then consider signing up for an online giving program such as iGive.com. Your online purchases from affiliated vendors generate small donations to your chosen charity. If you shop online frequently, these donations will add up quickly.

Gifts with Meaning—If you are stumped for a gift-giving idea, you can make a charitable contribution in someone else’s name. Many charities like Heifer International and The Nature Conservancy offer gift programs and will even send a card to the recipient detailing the gift that was made in his or her honor. These donations are a great idea for the person “who has everything,” while helping you increase your annual giving

When the Well is Dry

If you are scraping to make ends meet and can’t spare cash for a donation, there are still ways to work philanthropy into your budget. During the holocaust, teenager Anne Frank wrote, “How wonderful it is that nobody needs to wait a single moment before starting to improve the world.” Don’t let a lack of liquidity stop you from starting to improve the world:

Purge—Go through closets, the attic, and the basement and donate unused items in good condition to Goodwill, your hospital auxiliary’s thrift shop, or other collection site. Remember that many organizations accept housewares, electronics, and even furniture. Ask for a receipt and follow IRS rules for non-cash charitable donations.

Think Outside of the Box—When cash is tight, think of other ways to give. Donate art or antiques to a charity’s fundraising auction. Place land in a conservation easement. Donate a clunker car or boat. Even accumulated airline miles can be gifted. Take an inventory of tangible and intangible assets and determine which items you can donate.

Give of Yourself—According to the National Philanthropic Trust, the estimated dollar value of volunteer time was $20.85 per hour for 2009. By volunteering your time to a charitable cause—be it building a house with Habitat for Humanity or volunteering at a literacy or food bank program—you can make a difference in your community.

Giving as a Way of Life

Perhaps no one exemplified Rockefeller’s work/save/give advice better than Lake Forest College alumna Grace Groner. After living through the Great Depression, she worked as a secretary at the same job for 43 years. She lived in a Spartan, one-bedroom house and led a simple, frugal life. When she died, she left a whopping $7 million dollar endowment to her alma mater. We may not all be in Ms. Groner’s league, but we can all make a positive impact in our own way by making giving a part of our financial strategy.

10 Things I Want My Kids to Learn About Money Before They’re Adults

Here lately, I’ve been thinking more about the legacy I want to leave my kids. Maybe it’s because I’ve experienced the death of my mom and grandfather in the last year, and I’ve reflected on the many lessons they taught me.

Unfortunately, I ignored many of their lessons with regard to money and spent much of my 20s digging out of debt. I certainly don’t want my own children to repeat these mistakes, and I believe it may be harder for them to dig out.

1920s Photograph by Rennett Stowe on Flickr

With all the economic turmoil going on, I realize being fiscally responsible will be more important (and more difficult) for my children as they grow into adulthood.

Parents have always had to battle things like unrealistic media portrayals and an overall culture of consumerism. But layer on top of that the ridiculous levels of debt we’ve piled up as a country, and their future looks a little less certain.

Put another way, our kids probably won’t have the backstop we had. It’s doubtful social security will be around. Who knows where health care will wind up. Taxes are likely to be higher, and at least in the near term (meaning the next 5-10 years), things will probably cost more thanks to inflation, currency devaluation or some combination.

But it isn’t all negative. There will still be opportunities for our kids. People will still be needed to teach, to build things, to design building and bridges and roads, to provide health care and nursing and rehabilitation. To work on cars, to serve in the military, etc, etc.

However, to take advantage of those opportunities, our kids must first set themselves up for success. With all that in mind, I offer up:

10 Things I am Trying to Teach My Kids About Money Before They Reach Adulthood

1. No one owes you a thing. Too many people go through their entire lives with the expectation they are owed something. This is not the case, or at least it shouldn’t be. All you should ever expect is to be judged, compensated and respected based on your work ethic and your ability to create, inspire and hustle.

2. Debt is a cancer. Debt is a cancer on our society, on households, and on us as individuals. It saps creativity. It creates pessimism. It robs your future dollars. It limits your freedom. Avoid debt like the plague. Remember the old adage:

“He who understands interest – earns it. He who doesn’t understand interest – pays it.”

3. Save for emergencies…big emergencies. When you are young and many years from considering retirement (and not earning much), it’s tough to save money. But I have discovered no softer pillow than having money in the bank for emergencies. Aim to save about a year of your basic living expenses in a simple savings account (no risky investments here). With a one-year cushion, you’ll be able to weather storms many others will not.

4. Live simply. In 2011, life seems pretty complicated. By the time you are adults, I imagine it will be even more so. There will be new gadgets and toys and cool services and “got to haves.” The problem is, all these things compete for your earnings. I’m not advocating living like a pauper, but limit yourself to only a few of life’s luxuries.

5. Sleep on big financial decisions. When it comes time to buy a car, or a house, or book your first major vacation as a family, sleep on the plans for a couple nights. People selling you these things want you to act immediately to lock in their commission, as I would expect them to, but remember that you are the one who has to pay the bill. Some of my biggest financial regrets came because of a knee-jerk reaction. Be slow. Be methodical. Listen to your gut.

6. Protect your credit. Not because you hope to borrow money, but because you may find people extending a service to you may do so for less cost if they think you aren’t a big risk. And if those people don’t know you well, your credit score may be their only determining factor. It’s not necessarily fair, but it’s a part of life. Credit blemishes can hang around for a decade, so it’s best to avoid them in the first place.

7. Learn to do things yourself, but don’t be afraid to call in the experts. You may remember the time your dad rescued a toy from the toilet trap, saving us an expensive plumbing repair bill. Or the time I climbed up in the attic to unclog the air conditioner drain. But your dad knows his limitations, and calls in the experts when necessary. That’s what emergency savings are for.

8. Shallow people judge your things, real friends judge your character. Some of the saddest, loneliest people I’ve ever known have been surrounded by the nicest things money can buy. They often acquired these things to impress people they thought mattered, and in many cases it did – temporarily. Meaningful relationships are based on things money cannot buy: trust, respect, integrity, compassion, love.

9. Don’t trade the things you care about for a big salary. Remember what mattered to you most when you were a kid: Family, fun, dreams. These things should remain important to you as a grown-up, but often adults sacrifice these things to earn a big salary. Now, everyone has to sacrifice some to earn a living, but by learning to be content, you may be able to earn a comfortable living while still enjoying other things.

10. Start saving early. Remember those money games we used to play when you were a kid? One of them was an attempt to get you to understand one of the great financial wonders of the world: compound interest. You see, when you save money you earn interest on it. The next month you earn interest on the money you first put in, plus the interest you earned the month before. That’s right; you earn interest on interest. Now carry out that example for many years, even decades, and you can understand how some people are able to accumulate wealth. The trick is, you have to start early.

Parents, consider opening a kid’s savings account to get them started early. Our kids deposit a portion of allowance earnings every couple weeks and it has taught them a lot about the mechanics of banking – completing a deposit slip, balancing their savings register, etc.

Finally, keep in mind something your great grandfather taught your dad about finding balance. Be frugal, but remember to occasionally stop and smell the roses. Life is short, and it is meant to be enjoyed. Take an expensive vacation every now and then. Buy something of your “heart’s desire,” even if it doesn’t make sense financially. Be frugal in other areas of your life to make room for things you truly enjoy.

This post was included in the Family Finance Carnival at About.com: Kids and Money